IT stocks gain as much as 4% on weak rupee

Written by PTI | Mumbai | Updated: Aug 5 2014, 00:50am hrs
IT stocks, led by Infosys, today gained as much as 4 per cent amid weakness in the rupee against the dollar as the stronger US currency boosts the sales of software firms in rupee terms.

Shares of Infosys rose by 3.66 per cent, while Wipro stock was up 2.42 per cent and TCS gained 0.42 per cent on the BSE.

Infosys was the best performer among the 30 Sensex blue-chips.

Among others, HCL Tech climbed 2.52 per cent, Hexaware Tech (2.06 per cent) and Tech Mahindra (2.01 per cent).

Led by the gains in these stocks, the BSE IT index ended the day 2.08 per cent higher at 9,794.11.

The weakness in the rupee, which is trading at over 3- month low at 61.08 (intra-day) against the dollar, helped IT stocks, which get a large chunk of sales in dollars.

Fall in the rupee versus the US currency is broadly seen as positive for export-focussed sectors like the Indian IT space.

Analysts said large IT companies benefit from a weaker rupee, as it positively impacts their profit margins.

Meanwhile, in the broader market the BSE benchmark Sensex ended at 25,723.16, up 242.32 points.